Transitioning SA's Petrochemical Value Chain

One of the key opportunities relevant to Sasol’s operation that falls under “Improve” is the switch to alternative fuels. This is particularly important in aviation, which is a hard to abate sector, with potential for significant future growth in demand.

The Fischer-Tropsch process, which is agnostic of input sources, is capable of producing zero carbon Sustainable Aviation Fuel (SAF). Current aircraft technology requires that SAF is blended with a minimum of 50% fossil produced jetfuel (kerosene) from conventional refining processes. Sasol is well-placed to lead the production of SAF from green hydrogen, providing sufficient suitable sources of sustainable carbon can be procured. The company has identified SAF production as playing a critical role in its 2050 decarbonisation strategy, with a target of 25-50% blending of SAF with fossil kerosene by 2050.  

The HyShiFT SAF pilot programme at Secunda will produce 50,000 tons per annum of SAF. The target start date is 2025.

A dedicated pipeline between Secunda, Natref and OR Tambo airport currently supplies kerosene and synjet to the airport. SAF blended fuel could therefore supply fuel for refuelling both domestic and international flights. Emissions for domestic flights within South Africa are accounted for under the national greenhouse gas inventory, and therefore demand for greening of fuel on these flights will be largely South African policy driven.  International flights are governed by the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Whilst currently voluntary, this scheme enters a third phase from 2027 onwards which looks to be mandatory . 

These developments place a premium on SAF on the international market. However, there is a finite volume of fuel required for re-fueling at OR Tambo, suggesting in turn an ultimate limit to the demand for SAF. It is not clear whether it will make sense logistically or economically to transport SAF to other re-fueling destinations globally. A lack of market may ultimately limit the production of SAF from Secunda.